I have recently been updating staff costs within project budgets in line with recent increases (pension, pay etc). As a result, the amount we have been awarded by the funder is no longer 80% of the projected 100% costs, it is slightly less.

As we have to claim 80% costs that are based upon 100% of actual expenditure, which is now higher than forecasted in the awarded budget, I can see that we have two options available to discuss with the funding body:

1- We claim 80% of our actual expenditure, and because this is now a higher amount than was awarded for staffing costs, we effectively reach the limit of the grant early, meaning that our last quarterly invoice will not be paid in full.
2- We claim each quarter demonstrating 100% of spend, but not claiming 80% of spend, and instead claiming the relevant quarterly proportion of what was originally awarded, and demonstrating this in our financial claim.

I would be grateful for any input, and any examples of precedents set by other HEI’s who have experienced these issues previously.

Best wishes,

Frances.